Cboe to expand options trading hours for major stocks and ETFs
Cboe will offer trading on 24 of the most actively traded companies and five ETFs between 7:30 a.m. and 9:25 a.m. ET and 4:00 p.m. to 4:15 p.m. ET.
Key points
- Cboe Global Markets will extend options trading hours for 24 stocks and five ETFs starting Monday.
- The extended sessions run 7:30 to 9:25 a.m. ET and 4:00 to 4:15 p.m. ET.
- Brokers including TradeStation and Robinhood Markets will offer trading during the new hours.
Cboe Global Markets will expand options trading hours for two-dozen stocks and a handful of ETFs on Monday, after receiving approval from the SEC in May and a green light from regulators and the Options Clearing Corp. The extended sessions will run from 7:30 a.m. to 9:25 a.m. ET and from 4:00 p.m. to 4:15 p.m. ET, according to CNBC.
The move is another step toward around-the-clock trading. Cboe already offers pre- and post-market periods for index options, and exchange data shared with CNBC shows a record 228,097 average options traded daily in the pre-market session last quarter.
Which stocks and ETFs
The list includes the so-called Magnificent Seven stocks, several big-tech giants such as Oracle and Micron, and popular retail-trading names like Robinhood, Nokia, and Palantir. Pfizer and Alibaba also make the cut. The list will be updated twice a year.
The ETF options cover the State Street SPDR S&P 500 ETF Trust (SPY), Invesco QQQ Trust (QQQ), iShares Russell 2000 ETF (IWM), SPDR Gold Shares (GLD), and the State Street Financial Select Sector SPDR ETF (XLF).
More investors than ever appreciate the power of optionality and what it can do for their portfolios, and the pace of adoption and growth of the market really reflect that
— Rob Hocking, global head of derivatives at Cboe
Criteria and broker support
To qualify for extended hours, underlying securities must have an average daily volume of 150,000 contracts or higher over the preceding six months, a market value of $50 billion, and an average daily volume of at least 10 million shares. As a result, SpaceX does not qualify.
Brokers including TradeStation and Robinhood Markets have said they will offer trading during the sessions. Cboe also plans to list additional morning expiries for options on Nov. 9 and received SEC approval on Tuesday to offer binary options tied to company-specific key performance indicators.
